The signing of the US-China trade agreement is in line with market expectations

20 January 2020

Research

Week III January 2020 Latest Publisher and Economic Events Color the movement of regional and domestic markets in the past week. Danareksa Research Institute (DRI) summarizes a number of main points that are considered to affect market performance, as follows the signing of the US-China trade agreement, a report on the elimination of China from the list of currency manipulators by the US, and the release of Chinese economic data that is in line with market expectations, becomes the main point last week`s market performance. The US trade agreement with China mainly includes efforts to prevent theft of intellectual ownership rights, and coercion of technology transfer, in addition to China`s commitment which will increase product purchases from the US. China agreed to import products from the US worth USD 200 billion in the next 2 years, with a composition: manufacturing products (USD 32.9 billion 2020 and USD 44.8 billion 2021), agricultural products (USD 12.5 billion 2020 and USD 19, 5 billion 2021), energy products (USD 18.5 billion 2020 and USD 33.9 billion 2021), and services (USD 12.8 billion 2020 and USD 25.1 billion 2021). From domestic, BPS announced the performance of foreign trade Indonesia in December 2019. Indonesia`s export and import value in December 2019 was recorded at USD 14.4 billion (+3.8% Mom) and USD 14.5 billion (-5.5% Mom). This development brought a trade deficit in December 2019 down to USD 28.2 million from a deficit of USD 1.39 billion in the previous month. For the 2019 Jan-DES period, Indonesia`s trade deficit reached USD 3.19 billion, decreased compared to the 2018 deficit of USD 8.69 billion. Japan`s economy from the European economy, the price of goods and services increased 0.3% Mom in Buian December 2019, following a decline of 0.3% Mom. The price of the energy component (+0.2%) and non -energy (+0.5%) recorded accelerated. Annually, the inflation rate increased from 1.0% yoy to 1.3% yoy. Economy China The United States Economy (US) Week IV January 2020 Several economic indicators that need to be observed next week include Source: Danareksa Research Institute Photo by 尧智 林 on unssplash